Best 5 Morgan dollar buys up to $500 each

Need some help and suggestions here. A friend wants to get a Morgan dollar for each of his 5 grandkids, and can spend up to $500 on each. What coins should he buy/consider, and where best to purchase?

 

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I would do key dates like low grade 89cc etc or the best non-82-84 GSA or beautiful toners. Or maybe keys / better date GSA's for the boys and pretty toners or nicely toned 82-84 GSA's for the girls. Or the best DMPL's you can get for the price. The best stuff tends to hold and rise in value. The trick is getting a good deal and not overpaying. Since there are so many options he really needs someone who knows morgans and the Morgan market well to find the right pieces for him at the best bang for the buck.

 

I would add it would be wise to get graded coins, both for authenticity, grade, and to protect the coins.

 

Thanks for your suggestions and comments, Cascade! I fully agree with your general comments, and I suspect having him deal with someone who knows Morgans well (which I do not), and a reputable source, would be the way to go. He knows little about coins, only that he likes the look and size of Morgans, and that he wants to give something that should hold or increase its value, with a nice appearance, to his grandkids. For me, part of the problem would be trying to equalize the coins, and their perception, among the 5 grandkids, although your suggestions about differentiating between the boys and girls is an interesting thought.

 

Thanks, Johndoe2000$, for your suggestion. This is another factor I was thinking about. On one hand, the slabbed and graded coins make sense, for reasons you point out. On the other, however, there is something both appealing and educational about the ability to hold and feel the coins in raw form, especially for kids. How to marry the two is the question/problem, since we wouldn't want handling or mishandling of nice coins, particularly if in MS condition. Perhaps a primary coin graded and slabbed to protect, admire and safely put away, and a raw common coin in decent condition to hold? Just thinking...

 

That makes good sense. Would suggest that. You can find some decent Morgans for under $50, (common dates )

 

Thinking further, would the money be better spent/invested on very high grade commons or lower grade scarcer coins?

 

Stick with graded or GSA. $500 is a nice chunk of change to give to a kid. You don't want to give a kid a $500 raw coin and you don't want to buy a $500 raw coin if you don't know what you're doing either.

But he can also add a common date low grade Morgan for just above spot or a AU/BU for under $50 to go with the graded coins.

 

Do the grandkids actually have an interest in coins? If not, some other gift, even cash, might be better. If they have no interest in coins and get possession, it's only a matter of a little time before the coins will be lost, given away, or sold (probably for a lot less than purchase price). It's one thing to give a $20-30 silver dollar, but altogether different to give a $500 coin (unless the family is very rich).

Cal

 

Yes, I'm thinking this is the way to go. Also thinking that especially with kids the bling may outweigh rarity, so perhaps the highest grades available for the price might be best. Still wondering about the best sources/vendors to buy from. I know I can go to eBay and seek the best coins/values, but again, I'm no Morgan expert.

 

I have no idea whether the kids have any interest in coins, only that the grandfather clearly is set on doing this. The family is not rich, and frankly I was surprised when he told me he was willing to spend $500/coin, which is 5-10 times what I expected. If it were me doing this, I would do it with the condition the coin be safely put away, like in a safe deposit box.

 

If they don't have any existing interest in coins, I would consider something like an 1896. That year can be acquired in higher grades with strong strike fairly inexpensively. Then use the remaining funds for something like Savings Bonds. If any of the kids take an interest in coins, move forward from there. My grandmother gave me savings bonds for my birthday and christmas every year growing up. Not only were they of great use during college, but they were also an early introduction to saving and investing.

 

I'm with Cal! I'd almost bet that only one of the five grandchildren might have an interest in coins 20 years down the road. Why not just buy each one $500 worth of some stock with growth potential and a good track record of dividends? With dividends reinvested, I'll bet the stock would be worth a heck of a lot more than any Morgan dollar purchased for $500.

Chris

 

I buying for non-collectors, you want something that really looks good. I could make a case for buying higher grade generics, like 80-S in 66PL, as they are more spectacular to look at than a circulated semi-key, and they shouldn't be too hard to find. I'd only buy coins in this grade with a CAC sticker, though, as there is a wide range of quality, and you don't want to end up with a dog. These coins are not rare, but they are popular and always easy to sell.

If someone is a collector (not necessarily a coin collector, just someone who has a predisposition to collect stuff), then I'd tend toward something that is a little more scarce, but not as high grade. 78 8TF in 64, 78-CC in 64, 86-S or 88-S in 63PL, 92-CC in 45, 94-S in 50, etc. I could make a long list of these, but I think you get the picture -- stuff that has more than just a pretty face and lots of flash that a collector of things will be able to appreciate. These less generic coins tend to have the most potential for holding or gaining value

If you're trying to keep everything equal in perception, then perhaps generics for everyone would be best. They would also be easier (i.e., quicker) to source. Go through someone that has recommendations and or references you can trust. There are also people here that could help or set you up with someone else who can.

 

I would have him call Ian Russell at Great Collections. He's a great guy and I'm sure he can help direct him to coins in upcoming auctions that meet his parameters.

 

Thanks Pat. I like your suggestion, and I may suggest it to my friend who's looking to do this.

 

Then I have to as what are the grandfather's expectations as far as what happens with the coins in the future? Does he expect they will appreciate at some given rate so that they can be sold to fund an education? Does he think that a $500 investment in coins is better than a $500 investment in an index fund? Is he getting information from tabloid print ads or TV and radio salesmen? If this is the case, his expectations need to be recalibrated. Perhaps a $100 coin and the rest in a mutual fund would be a better idea.

 

You may be right about the future (dis)interest of the kids, but my friend wants to buy them Morgans. I do like the suggestions that less expensive Morgans and perhaps Savings Bonds or a little stock/mutual fund would be a better route.

 

Thanks for the suggestions, particularly the specifics. Makes sense to me.

 

As for the grandfather's expectations, while he hasn't elaborated, I sense that he believes the coins will appreciate in value over time and that he wants to give his grandkids something of concrete value to remember him by in the future. And he likes Morgans. As stated above, if I were doing this I would spend no more than $100 on each coin and buy bonds or funds with the rest, as others have suggested. I'll discuss this further with him to see what his druthers are.